HSB 689

“Travel retailer” is defined in the bill. A retailer may offer and disseminate travel insurance under a travel insurance producer’s license only if all of the conditions as detailed in the bill are satisfied. “Offer and disseminate” is defined in the bill. The bill requires that a retailer that offers and disseminates travel insurance make brochures or other written materials that have been approved by the travel insurer, and that meet the requirements as detailed in the bill, available to prospective purchasers. _____ offered to a prospective purchaser; evaluate or provide advice on a prospective purchaser’s existing insurance coverage; or hold oneself out as a licensed insurer, a licensed insurance producer, or an insurance expert. The bill provides that as an insurer’s designee, a travel insurance producer shall be responsible for the acts of each retailer that offers and disseminates travel insurance under the travel insurance producer’s license, and shall use reasonable means to ensure that each retailer complies with the applicable requirements in the bill. Under the bill, a person that is licensed in a major line of authority as an insurance producer shall be authorized to sell, solicit, and negotiate travel insurance. A property and casualty insurance producer shall not be required to become appointed by an insurer in order to sell, solicit, or negotiate travel insurance. Travel protection plans (plan) may be offered in the state at one price for all features included in the plan if the requirements detailed in the bill are satisfied.4, except as otherwise provided in the bill. The bill requires that any document provided to a prospective purchaser prior to the purchaser’s purchase of travel insurance, including but not limited to sales, advertising, and marketing materials, is consistent with the travel insurance policy, including but not limited to forms, endorsements, policies, rate filings, and certificates of insurance. If a travel insurance policy or a travel insurance certificate contains any preexisting condition exclusion, a prospective purchaser shall, at any time prior to the time of purchase, be provided an opportunity to learn more about the exclusion. Any preexisting condition exclusion shall also be included in the travel insurance policy or the travel insurance certificate fulfillment materials. “Fulfillment materials” is defined in the bill. _____ The bill allows a primary policyholder or a primary certificate holder, from the date of purchase of a plan, to cancel the policy or certificate, as described in the bill, for a full refund of the purchase price of the plan. “Primary policyholder” and “primary certificate holder” are defined in the bill. An insurer is required to disclose in the policy documentation and fulfillment materials provided to the purchaser of travel insurance whether the travel insurance is primary or secondary to any other applicable insurance coverage. If travel insurance is marketed directly to consumers through an insurer’s internet site, or by another person via an aggregator site, it shall not be an unfair trade practice or other violation of law for the insurer or the other person to provide an accurate summary or short description of the available insurance coverage, if all provisions of each available travel insurance policy are easily accessible to consumers via electronic means. “Aggregator site” is defined in the bill. The bill prohibits a person from offering, soliciting, or negotiating travel insurance or a plan on an individual or group basis through use of a negative option or opt out that requires a consumer to take affirmative action to deselect coverage if the consumer purchases travel insurance or a plan.4 to offer or sell a travel insurance policy that, due to exclusions of other provisions in the policy, cannot result in payment of any claim made by any insured under the policy; or to market blanket travel insurance coverage as no cost coverage. “Blanket travel insurance” is defined in the bill as a policy of travel insurance issued to any eligible group that provides coverage for specific classes of persons as defined in the policy, with coverage provided to all members of the eligible group without a separate charge to individual members of the eligible group. “Eligible group” is also defined in the bill. _____ If a consumer’s travel destination is located in a jurisdiction that mandates specific insurance coverage, the bill provides that it is not an unfair trade practice to require that the consumer, as a condition of purchasing a travel package, either purchase the coverage required by the jurisdiction through either the retailer or the travel insurance producer that provides the travel package, or agree to obtain and provide proof of coverage that meets the jurisdiction’s requirements prior to the consumer’s departure. Notwithstanding any other provisions of Code Title XIII, subtitle 1, a person shall not act as or represent itself as, a travel administrator for travel insurance in this state unless the person is a licensed property and casualty insurance producer in this state, or is in compliance with all laws and regulations that are applicable to managing general agents or to third-party administrators in this state. “Travel administrator” is defined in the bill. The bill provides that an insurer is responsible for the acts of a travel administrator administering travel insurance underwritten by the insurer, and for ensuring that the travel administrator maintains all records related to the insurer. Notwithstanding any provision of Code Title XIII, subtitle 1, to the contrary, travel insurance shall be classified and filed for purposes of rates and forms as detailed in the bill. Travel insurance may be issued in the form of an individual, group, or blanket policy. “Group travel insurance” is defined in the bill. Eligibility and underwriting standards for travel insurance may be developed and provided based on travel protection plans designed for individual or identified marketing or distribution channels, provided the standards also meet the state’s underwriting standards for the inland marine line of insurance. An insurer that offers travel insurance shall pay tax on travel insurance premiums as detailed in the bill. _____ resident of this state and to travel insurance that is sold, solicited, negotiated, or offered in this state, and to any travel insurance policy or certificate that is delivered or issued for delivery in this state. The bill does not apply to cancellation fee waivers or to travel assistance services except as expressly provided in the bill. “Cancellation fee waivers” and “travel assistance services” are defined in the bill. All applicable provisions of Code Title XIII, subtitle 1, shall apply to travel insurance except that specific provisions of the bill shall supersede any general provisions of Code Title XIII, subtitle 1, that are otherwise applicable to travel insurance. The commissioner may adopt rules as necessary to implement and administer the bill.